Sign at the entrance to Reebok's world headquarters in Canton, Massachusetts in 2005. Authentic Brands, the owner of the Reebok brand, purchased Ted Baker fashion on Tuesday. File Photo by Adam Hunger/EPA
Aug. 16 (UPI) -- Authentic Brands Group, which owns Reebok and Forever 21, announced Tuesday a deal to acquire British fashion chain Ted Baker for about $254 million.
Authentic Brands said it plans to hold Ted Baker's business portfolio in a separate intellectual property holding company but in control of ABG. It would also manage the brand's stores and online operations.
"Ted Baker is a highly regarded, uniquely British brand whose strong fashion credibility resonates with consumers around the world," Jamie Salter, founder and CEO of Authentic Brands said in a statement.
"We are excited to build on the brand's global foundation through a business model focused on licensing, wholesale, retail, digital and strategic marketing partnerships. Under ABG's ownership, we believe that Ted Baker is poised for continued growth and success."
The cash offer is about an 18% premium on Ted Baker's Monday closing price on the London Stock Exchange.
Authentic Brands own such portfolios as Reebok, Nautica, Eddie Bauer and Sports Illustrated, covering brands from fashion and lifestyle, active and outdoor, and the entertainment sectors. Its brands also have more than 8,500 retail stores and shop-in-shops.
Helena Feltham, interim chair of Ted Baker, said it found Authentic Brands its best fit after receiving numerous unsolicited bid proposals.
"The Ted Baker board believes the offer, which is supported by Ted Baker shareholders with a majority of shares, represents a fair value for shareholders and balances the company's growth prospects with the risks of the uncertain economic environment in which the business is operating.
"The Ted Baker board believes that ABG will be a strong and supportive owner of the business. We are confident that with ABG'sexperience, reach and investment, the Ted Baker brand will be capable of achieving its long-term global potential."